The sufficient condition for a firm to be in equilibrium is that the
Answer
(B)
marginal cost curve cuts the marginal revenue curve from below
2
A minimum price legislation is also called
Answer
(D)
price floor
3
Which of the following factors is not a cause of change in demand? Changes in
Answer
(B)
price of the commodity
4
Cooperative societies are formed mainly to
Answer
(D)
promote and maintain the welfare of members
5
If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is
Answer
(A)
2.00
6
The use of the bank rate, cash ratio and open market operations constitute
Answer
(A)
monetary policy
7
Scale of preference shows
Answer
(D)
consumer's wants in order of priority
8
Gross National Product (GNP) less the provision for the wear and tear of assets is the
Answer
(C)
net national product
9
Which of the following factors is not a cause of diminishing returns?
Answer
(D)
Technological innovations
10
In perfectly elastic supply, the supply curve
Answer
(B)
is horizontal
11
An example of transfer payments in national income accounting is
Answer
(C)
unemployment allowance paid to the citizens
12
Which of the following industries will add more value to primary products?
Answer
(C)
Mining industry
13
A consumer of a single commodity is in equilibrium when
Answer
(C)
he equates marginal utility and price
14
Foreign investment and long term securities in the balance of payment accounts are recorded as
Answer
(B)
capital account transaction
15
A benefit that is present in all forms of economic integration is that
Answer
(C)
factors of production are free to move and be moved
16
The production of rice and yam on the same farmland is an example of
Answer
(A)
joint supply
17
If the government imposes a minimum price on a commodity
Answer
(A)
market surplus occurs
18
In manufacturing, division of labour may be hindered by
Answer
(B)
low level of technology
19
The production cost that varies inversely with output is the
Answer
(D)
average cost
20
A firm that closes down will still incur
Answer
(B)
fixed cost
21
A disadvantage of a jont-stock company is
Answer
(D)
limited control in management by shareholders
22
The middlemen is responsible for
Answer
(D)
breaking the bulk
23
A major function of the retailer is to
Answer
(B)
break bulk and sell products in small units
24
A positive effect of a rapid population increase is
Answer
(C)
a wider market for goods and services
25
Which of the following factors may not affect the efficiency of labour?
Answer
(C)
Race and colour of workforce
26
The type of unemployment found among workers who leave their jobs in search of other jobs is termed
Answer
(C)
frictional unemployment
27
The main objective of marketing boards is to
Answer
(C)
stabilize the incomes of cash crop farmers
28
The use of mass advertising media enable a firm to enjoy
Answer
(C)
marketing economies
29
Increasing national income without effective control of population size in a country can lead to
Answer
(D)
underutilization of resources
30
An example of commodity money is
Answer
(D)
silver
31
If inflation is anticipated, people may
Answer
(B)
spend more money
32
If the Central Bank increases its bank rate
Answer
(C)
the supply of money may be reduced
33
Commercial banks are different from development banks in that the latter
Answer
(D)
do not deal in foreign currencies
34
Fiscal policy measures imply a change in
Answer
(D)
government revenue and expenditure to regulate an economy
35
If demand is perfectly inelastic, a tax imposed
Answer
(B)
is borne only by the consumer
36
Development planning focuses mainly on
Answer
(B)
mapping out strategies by the government
37
Political instability hinders economic growth because it
Answer
(C)
discourage entrepreneurs generally
38
Foreign investment and long term securities in the balance of payment accounts are recorded as
Answer
(B)
capital account transaction
39
An argument for the use of commercial policy rest on the need to
Answer
(D)
make a country enjoy absolute advantage in production of all goods
40
Which of the following measures can lead to an increase in exports?
Answer
(C)
Depreciation of currency
41
Given that a country's index of export price is 180 and that of import is 200, the terms of trade is
Answer
(C)
90.00
42
A benefit that is present in all forms of economic integration is that
Answer
(A)
factors of production are free to move and be moved
43
The main function of the African Development Bank (AFDB) is to
Answer
(C)
provide loans to members to finance viable projects
44
If petrol is no longer needed to produce energy, then demand for crude oil
Answer
(C)
may be limited to chemical industries
45
There is unemployment of resources when production is
Answer
(A)
within the production possibility curve
46
A major characteristic of natural resources is that they
Answer
(C)
are free gifts of nature
47
A major disadvantage of a capitalist economy is that it
Answer
(D)
worsens income inequality among the citizens
48
The mining sector of an economy contributes 60% to the Gross Domestic Product(GDP). If the GDP is $540, what is the contribution of the mining sector?
Answer
(C)
$ 324.00
49
The increase in the demand for a commodity may lead to a decrease in the demand for another if both are
Answer
(D)
in competitive demand
50
The demand curve for goods of ostentation is usually
